The government of Pakistan announced the establishment of a dedicated regulatory body to oversee all crypto-related transactions in the country, on Tuesday. Pakistan Virtual Assets Regulatory Authority (PVARA) will ensure that crypto related businesses in Pakistan are appropriately registered and are in compliance with the country’s laws.
Bilal bin Saquib, Pakistan’s Minister of State for crypto and blockchain confirmed the development on X.
“To all crypto innovators, visionaries, and builders: Join us in shaping the future. Welcome to Pakistan,” Saqib’s post from July 8 noted.
Key responsibilities of PVARA
PVARA will be responsible for issuing licences to crypto firms operating in Pakistan and the ones looking to enter the market there.
In the coming months, the committee will reportedly work on designing technical standards to safeguard investors against frauds and market manipulation.
The PVARA will be ensuring that Pakistan’s crypto ecosystem is in line with global standards and guidelines set up by the Financial Action Task Force (FATF), the International Monetary Fund (IMF), and the World Bank.
Through these efforts, Pakistan aims to curb instances of crypto exploitation for illegal uses like money laundering, the Dawn report added.
Pakistan’s tango with crypto
This year, Pakistan has taken big steps to show support towards the crypto industry, which presently stands atop the valuation of $3.37 trillion.
Earlier in March, the country announced the establishment of the Pakistan Crypto Council (PCC) to stragetise the roadmap for Pakistan’s crypto exploration. Binance co-founder and former CEO Changpeng Zhao has been onboarded among advisors to the PCC.
Back in May, Pakistan also launched a strategic Bitcoin reserve just like the US, hoping to ensure long term benefit to the national economy.
As per the Dawn report, Pakistan’s Ministry of Finance has hailed the creation of PVARA as a pivotal move towards establishing a secure legal framework for the growing crypto industry. As of now, however, the details on the members of the committee remain undisclosed.